Low Interest Rates Promised in Europe as Crisis Rekindles

By

Brian Blackstone And

Jason Douglas

Updated July 4, 2013 5:08 p.m. ET

FRANKFURT—Europe's central bank broke with longstanding tradition by pledging that interest rates will remain at record lows far into the future—distancing itself from speculation it would follow any U.S. move toward less growth-friendly policies as the euro zone's financial crisis flares up again.

The strategy shift by the European Central Bank, which has long prided itself for keeping all its options open, came amid a political crisis in Portugal that threatened to bring down the government of a country largely seen...